Overall jobs growth rate slips to 3.5% in FY20: Report

Reflecting the overall stress in the economy, the employment growth rate declined to 3.5 per cent in FY20 from 3.8 per cent in the previous fiscal year, but the total number of jobs increased to 50.02 lakh from 48.32 lakh, says a report.

In FY20, 1.70 lakh new jobs were added, while the net addition was 1.76 lakh in FY19, shows a CARE Ratings report.

But in FY20, as many as 321 companies reduced their headcounts by 1.13 lakh compared to 272 companies doing so by 1.18 lakh in the previous year.

In FY20, top 10 companies added 1.41 lakh to their headcounts of which four each were in IT and banks and two in the NBFC space.

Nine companies had headcounts of above 1 lakh each, of which four were in the IT sector, two in banking, and one each in auto, NBFC and miscellaneous sectors, says the report.

Seven companies had headcount of each between 50,000 and 1 lakh and 17 had between 25,000 and 50,000, while 33 companies with headcount of each above 25,000 accounted for 57 per cent of total employment.

In terms of sectors, four industries accounted for around 61 per cent of jobs, led by IT (23 per cent), banking (22 per cent), auto (9 per cent) and finance (7 per cent). Textiles, which at one time was a leading employer, was fifth in the hierarchy with share of 2.4 per cent. Ten industries saw a decline in headcounts.

In terms of growth in employment or headcount, 11 of the 33 industries witnessed growth of above the sample average of 3.5 per cent. This included electricals, finance, banking, IT, FMCG, consumer durables, trading, chemicals, iron & steel, retail and insurance.